The folks at The Motley Fool try not to take themselves too seriously. But their success in the world of investing is no laughing matter. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool is essentially an investment advice company. But the platform is actually much more: a community, a movement, an innovative mode of thinking and doing.
It is sometimes difficult to ask for help, especially when it comes to investing. We consider our uncertainty a sign that we are lacking some fundamental, modern know-how. We privately ruminate, perhaps never reaching out: do the guys and gals at brokerage firms really know so much more about the market than me? Can the market even be calculated? Is The Motley Fool legit?
The fact of the matter is that success in the world’s financial markets is predicated on educated guesses. And the average investor simply does not have time to do the research which turns a hunch into an educated guess; The Motley Fool does all this work for you, plus a little bit more. Check out these Motley Fool stock picks for quantitative proof.
By focusing on sustained, long-term stock picks, the experts at The Motley Fool have shown us that dependability does not only come in the guise of mutual funds and ETFs (exchange-traded funds).
The Numbers Don’t Lie
- Since the company’s inception, the S&P 500 has increased 118.7%. In contrast, Tom and David Gardner have seen returns of 293.7% and 828.1%, respectively.
- Stock pick performance in 2020: a return rate averaging 29.33%, compared to an S&P average of 9.21%
- Consider this: if you had invested $10,000 in 2002 and followed the recommendations of The Motley Fool’s stock picks, you would be sitting on roughly $250,000, or what amounts to a small fortune.
- The Motley Fool has been generally successful through different market eras, surviving the dot-com bust and the 2008 housing crisis.
It’s difficult to argue with these numbers, especially when you consider that The Motley Fool’s business ethos rotates around safe, sustainable, long-term investing. This is no get rich idealization cooked up on a rainy day; rather, these are seasoned professionals providing you solid, crafty picks in a market that grows more complicated and ambiguous by the day.
Community – Come Together as Investors
One of the more novel aspects of The Motley Fool is its sense of community. This often gets overlooked in all the talk centered on its remarkable Stock Advisor service. As a member of The Motley Fool, you gain access to its Community Forum, a safe space for newbie and grizzled vet alike. You can get anything from stock tips to book recommendations there.
In addition, a feeling of solidarity is sown through investment newsletters and interactive web seminars. The Motley Fool is also very active on social media, frequently publishing podcasts, YouTube videos, and more. In short, The Motley Fool becomes an animated presence in each member’s life.
Innovation: New Wine into Old Bottles
The Motley Fool’s innovation springs from reanimating the half-buried past. In today’s fast-paced society, we are always on the lookout for the next great thing, sometimes at the expense of losing sight of what has been trialed and true. The Motley Fool manages to balance both.
Though attuned to the complexities of the modern market, the folks at The Motley Fool recognize that buy-and-hold strategies which smartly emphasize the long-view are the best bet for average investors. They accomplish this with mixing “blue-chip” stock picks with moderately “off-beat”, unexpected picks. This produces a portfolio that is balanced and poised for the long-haul.
That said, The Motley Fool is not ideal for would-be day-traders. The Motley Fool makes their picks based on an ideal hold of at least 3-5 years.
Stacking Up: How Does Fool Compare to the Competition
The Motley Fool is often compared to stock picking services like Zacks and The Street, and really, there is something compelling and worth recommending about all of these services.
Take Zacks: if you are an active or semi-active investor, Zacks is an appealing platform because it allows for individual stock purchases. What’s more, it affords the user a ton of technical data via graphs, charts, and granular reports. While this may intimidate the novice, a seasoned trader will relish the kind of details available at their fingertips through Zacks’ service. In comparison, The Motley Fools keeps things simple and streamlined.
And then you have The Street, with its “mad” and gritty image curated by Jim Cramer, the personality behind CNBC’s long-running show “Mad Money”. The Street and The Motley Fool share similar functions, and feel pretty much the same from a user perspective. What sets them apart is their respective ethos.
The Street is more focused on selling, whereas The Motley Fool has lived by the notion of buying strong, dependable stocks and holding.
The Bottom Line
The Motley Fool is hard to beat, according to our research. With its myriad user perks, a strong community, and a pedigree of professional success, this is a platform that will appeal to the moderate beginner. It is a safe bet for those looking to invest their money for long-term gain. Finally, do a little research, sink your teeth in, and pick an advisor which best allows you to do you.